The city could achieve annual savings in excess of $4 million, if an agreement reached this week with more than 500 city employees on salary cuts and pensions is also adopted by other union members, according to City Manager Phil Kamlarz.

The agreement, announced at Tuesday’s City Council meeting, was made with members of the Service Employees International Union (SEIU) 1021, the city’s maintenance and clerical workers, and it will go some way to alleviate Berkeley’s $12.2 million budget deficit.

In agreeing to cuts in salary increases that had already been agreed upon, and to a two-tier pension system, SEIU members also prevented layoffs among its members. The city has said it would have to make about 79 job cuts in order to reduce costs. The new agreement, which has also been signed by a number of non-represented workers, includes provisions for early retirement, said Kamlarz. … Continue reading »